FX.co ★ India’s Trade Deficit Narrows Slightly in May, Remains Near Record Levels

India’s trade balance showed a marginal improvement in May 2026, with the deficit easing to -28.21 billion from -28.38 billion in April 2026, according to data updated on 15 June 2026.

The latest figures indicate that while the trade gap has narrowed slightly month-on-month, it remains elevated, highlighting ongoing pressure from imports relative to exports. The modest shift suggests that underlying trade dynamics have not changed dramatically between April and May, even as the headline deficit figure improved.

With the deficit still near April’s level, market participants and policymakers are likely to watch upcoming releases closely for clearer signs of whether May’s move marks the start of a trend or a temporary fluctuation in India’s external trade position.